Daily Tax Update - December 13, 2007

HOUSE PASSES NEW AMT BILL, LACKS VETO PROOF MARGIN:  Last night, by a vote of 226 to 193, the House passed a second revenue-neutral patch for the alternative minimum tax. However, the bill fell short of securing a veto-proof margin. Three Democrats crossed party lines to vote with Republicans in opposition to the bill. Senate Majority Leader Harry Reid (D-NV) is expected to try to bring the new House bill up and amend it to remove the offsets. The Majority Leader has said that he does not have the 60 votes necessary to obtain cloture on the bill with offsets. If cloture were obtained, the bill would then have to return to the House for another vote.

  • Senate Finance Committee member Orrin Hatch (R-UT) predicted the House bill would fail again in the Senate. Hatch added, “The question is what will happen next? How long will this game of ping-pong between the House and Senate continue?"
  • Following the vote last night, Treasury Secretary Henry Paulson said, “Last week the Senate passed an AMT relief bill that doesn't raise other taxes, and could be signed quickly by the President. I am disappointed that the House has twice chosen to pass a bill that is unacceptable, and that further delays our ability to plan for the filing season.
  • Today, the House approved a one-week continuing resolution funding government operations until next Friday. House Democratic leaders are still hoping to wrap up work for the year by Wednesday, but work could continue until late in the week. It is uncertain when further action on the AMT patch will occur.

INTERNAL REVENUE SERVICE - CIRCULAR 230 DISCLOSURE:
As provided for in Treasury regulations, advice (if any) relating to federal taxes that is contained in this communication (including attachments) is not intended or written to be used, and cannot be used, for the purpose of (1) avoiding penalties under the Internal Revenue Code or (2) promoting, marketing or recommending to another party any plan or arrangement addressed herein.

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